President Joe Biden’s multitrillion-dollar infrastructure proposal includes a major union handout that would overhaul labor law in the United States.
The White House released a fact sheet Wednesday detailing Biden’s proposed $2 trillion infrastructure package that includes a call to pass the PRO Act, which is currently languishing in the Senate after passing the House. The law would overturn right-to-work laws in 27 states and expand the ability of the National Labor Relations Board to fine employers that violate employees’ organizing rights.
“[Biden] is calling on Congress to ensure all workers have a free and fair choice to join a union by passing the Protecting the Right to Organize (PRO) Act, and guarantee union and bargaining rights for public service workers,” the fact sheet states. The sheet also says that increased union membership can increase worker productivity. The labor overhaul, however, would overturn existing laws in more than half of the states in the country that allow employees to work without requiring union membership.
Biden’s infrastructure plan would also provide a massive handout to the Service Employees International Union by allocating $400 billion for in-home Medicaid health care. In many Democratic-run states, in-home Medicaid health workers are forced to join the SEIU, a major Democratic donor and labor union with nearly two million members.
Critics of the proposal said Biden is using the infrastructure package as “cover” to pass pro-union reform.
“By using his massive infrastructure proposal as cover for denying millions of American workers their right to decide for themselves whether or not to subsidize union activities, President Biden is proving that his top priority is really building the forced-dues empire of his union boss political allies,” Mark Mix, president of the National Right to Work Committee, said. “The so-called PRO Act will eliminate by federal fiat all 27 state right-to-work laws and give union bosses a whole host of other new coercive tools to force workers into compulsory dues payments and one-size-fits-all union ‘representation.'”
The infrastructure bill, which Democrats have called “must-pass” legislation, may be the best vehicle for advancing the controversial PRO Act. Biden’s strong endorsement of the labor law has not helped it advance through the Democratic-controlled Senate. Majority Leader Chuck Schumer (D., N.Y.) reportedly told AFL-CIO leaders that he would not bring it to the floor without 50 cosponsors, according to the Intercept. Sens. Joe Manchin (D., W.Va.), Mark Kelly (D., Ariz.), Kyrsten Sinema (D., Ariz.), Mark Warner (D., Va.), and Angus King (I., Maine) have yet to back the package.
Other union watchdogs said the Democratic holdouts are right to be skeptical of the bill. Charlyce Bozzello, communications director at the Center for Union Facts, said the passage of the act could harm workers who are struggling to recover from the economic impacts of the coronavirus pandemic.
“Far from providing a ‘free and fair’ choice for workers, the PRO Act is nothing more than a union wishlist,” Bozzello said. “The bill does little to support American workers who are struggling to get back on their feet after the pandemic. Instead, it would consolidate more control with our country’s labor unions, force more employees to pay union dues as a condition of employment, override the right to a secret ballot election, and threaten the livelihood of countless freelancers.”
Biden unveiled the infrastructure package at a speech in Pittsburgh on Wednesday. He urged quick congressional action on the package, which Democratic lawmakers have said they want to pass by Independence Day. He also said that he wants to include Republicans in negotiations, but other Democratic leaders have indicated that they could push the infrastructure package through via the budget reconciliation process.
The passage of the PRO Act would likely require the elimination of the Senate filibuster, however, which would allow the Senate to move forward on a number of other Democratic legislative initiatives. Manchin and Sinema have said they oppose ending the filibuster.
The Biden administration did not respond to a request for comment.
The hidden agenda behind the new president’s busy week
No one can accuse President Biden of easing into office. His first days have been a blizzard of executive orders, presidential memorandums, and official proclamations. He says he wants to overturn the worst policies of the previous administration, and to restore a sense of national unity and institutional integrity. What gets lost in the details of all these initiatives is Biden’s partisan goal.
It’s not just that the new president wants to resume the trajectory America was on when Barack Obama left office in 2017. He also wants to claw back the gains red states made over blue states during the last four years. He wants to shift federal resources to Democratic constituencies, and to save the blue states from the true cost of their misguided policies. And if red America has to pay a price in lost jobs and tax revenue, well, that’s too bad.
Leave aside, for the purposes of this discussion, the relative merits of Biden’s executive actions. (I disagree with almost all of them.) Focus instead on their distributional effects, not on individuals but on sectors of the economy, on regions of the country, and on the donor bases of the two parties. The image that comes to mind is of swarms of dollars changing course midflight: a mass migration of subsidies, spending, and incentives from the GOP coalition to the Democratic one.
Start with energy. Biden killed the Keystone XL pipeline at a cost of 1,000 jobs and diplomatic goodwill with Canada. He banned fracking on federal lands and paused oil and gas lease sales in the Arctic National Wildlife Reserve. According to a White House fact sheet, he told federal agencies to “accelerate clean energy and transmission projects.” He is sure to bestow federal largesse on the sons of Solyndra.
The alternative energy sector overwhelmingly favors Democrats. Its political investments have paid off. The old-style extractive industries, mainly based in GOP strongholds, will suffer. In some cases they are targeted for extinction. The knock-on effects are serious. “Wyoming state superintendent Jillian Balow notes that her state depends on some $150 million a year in oil and gas federal royalties to fund K-12 schools,” says the Wall Street Journal editorial board.
Other Biden measures resumed the flow of government aid to the special interests behind his campaign. The second Catholic president has jumpstartedfederal funding of Planned Parenthood almost two years after President Trump cut off the nation’s largest abortion provider. Biden also reversed President Trump’s ban on money for “sanctuary cities” that choose not to enforce federal immigration law. That decision will help boost the budgets of progressive municipalities eager to pass off the costs of illegal immigration. Biden’s codification of the Supreme Court’s Bostock decision, which made gender identity protected under civil rights law, and his lifting of the ban on trans soldiers is sure to please a class of donors essential to Democratic Party finances.
Biden’s proposed American Rescue Plan best captures the new administration’s intermingling of public policy and greasy-pole gamesmanship. Take, for example, the $130 billion that Biden wants to spend on K-12 schools. That number is on top of the $67 billion Congress already has committed to reopening elementary and secondary schools.
The additional cash is a handout to the teachers’ unions, who have opposed a return to in-person instruction at every opportunity, and who are among Biden’s closest allies. Biden has adopted the unions’ rhetoric, saying that schools cannot open until they have been renovated. He’s wrong, of course—measures such as masks, hygiene, and social distancing are enough to stop the spread, especially among the elementary schoolers who need in-person classes the most and whose transmission rates are low. But science doesn’t matter. The unions must get paid.
One year after COVID-19 appeared in America, it is more than evident that arbitrary, statewide lockdowns are a disaster for small businesses, which happen to be a key part of the Republican coalition. The states that have done the most to reopen have best weathered the economic storm. And these same states tend to be low-tax, low-minimum-wage, and have a business-friendly regulatory environment, as well as a warmer climate. The Wall Street Journal reports that the South is leading America’s recovery. But, in the heavily Democratic northeast, “The recovery of jobs has lagged behind.”
What does Biden want? His solution is to make Florida and Texas more like New York and California. My colleague at the American Enterprise Institute, Paul H. Kupiec, calculates that the nationwide $15 minimum wage contained in the American Rescue Plan would “shift business formation, growth, and employment from red states to blue, as the higher minimum wage erodes red states’ labor cost advantage in many job categories.” What’s best for Cuomo, however, is not what’s best for the country.
A steep minimum wage hike in the middle of an economic crisis that disproportionately affects small business is the exact opposite of what you want to do to spur full employment. But it does make sense if you are using the crisis to gain leverage for unions and government over free labor and the private sector.
Blue America began to claw back red America’s earnings last week. And the next four years (at least) will see the Biden coalition press its advantage.
Joe Biden likes to claim his plan to repeal the Trump tax cuts won’t cause most Americans to see their taxes rise. That’s wrong, say both a famed rapper and a noted anti-tax activist – a position backed up by a newly released study that also projects wages for an average American household will decline if his plan is enacted.
An analysis of the Biden plan released by Grover G. Norquist’s Americans for Tax Reform said the passage of Biden’s plan would lead to a top marginal rate of more than 60 percent on many households and small businesses.
This news did not sit well with the rapper 50 Cent – commonly known as “Fitty” – who threw his support to President Donald Trump, saying on Twitter “Yeah, I don’t want to be 20 Cent. 62 percent is a very, very bad idea.”
Under the Biden plan higher earners like the rapper, who was born Curtis James Jackson III, who are New York City residents could see their top rate go as high as 62 percent. “Are you out of ya (expletive deleted) mind?” he said through his social media account.
A separate study by Boston University economics professor Laurence J. Kotlikoff for the non-partisan Goodman Institute looked at the tax and Social Security changes that would occur under the Biden plan found that wages would decrease by $1,000 per year for households with income of $50,000 and by $2,000 per year for a two-earner couple making $100,000. Additionally, because the $400,000 threshold in the former vice president’s plan is not indexed, couples who start out with a modest income in their 20’s could end up “paying the Biden tax by the time they are in their 50’s.”
The Goodman study also found the tax discriminated based on age, with younger entrepreneurs facing “six times the extra burden on retirees with the same income in their 60’s, living off accumulated wealth.”
Biden has vowed to steeply raise personal income taxes and impose an additional 12.4 percent payroll tax (along with a doubling of the capital gains rate to 40 percent). New York has an 8.82 percent income tax and New York City takes another 3.876 percent. Ironically, his plan would have the biggest impact on taxpayers in blue cities and states – his base of support in the upcoming election – because they typically impose a higher tax burden on their residents.
“50 Cent speaks the truth when he says no one should have 62 percent of any dollar they earned taken by government. 50 Cent speaks not just for rappers but for millions of small businessmen and women who would be hit by the high tax rates threatened by Biden and New York,” Norquist said.
Other studies that have looked at the Biden plan, including those from The Tax Foundation, the Tax Policy Center, and Penn/Wharton all projected taxes will rise on all income groups if the Biden plan becomes law.
That’s what we all said nearly twenty years ago while struggling to cope with our grief. Since the days of George Washington, we’d thought of ourselves as more or less removed from what he called “messy, foreign entanglements,” protected from the rest of the world by two great oceans and divine providence.
We’d jumped into the thicket a time or two. America saved the world at least twice during the 20th century, probably three times given our willingness to contest an expensive, global Cold War which occasionally turned hot in places like Korea, Vietnam, and the Middle East at the cost of our greatest treasure: the young men and women sent to fight.
Was it strange that we never asked to be thanked for it? No, that’s just the way we are. We want to live our lives in peace, left alone to make our own choices, secure in our liberties as God gave them to us. We flirted with the building of empires but that really wasn’t for us. We wanted to be, and often were, the good example for others to follow.
Then came 9/11. A group of religious fanatics hijacked four U.S.-flagged airliners, turning them into flying missiles aimed straight at the heart of our political and commercial institutions. Two of them hit New York’s Twin Towers with such explosive force the buildings crumbled to the ground as if they were made of sand.
A third jetliner reportedly headed for the White House crashed instead into the Pentagon. On the fourth plane, the passengers who’d learned what had happened on the other three revolted against their captors. The ensuing struggle meant their plane, instead of piercing the dome of the U.S. Capitol as planned, broke apart in a field in Pennsylvania.
“Never forget,” we said afterward. “Never forget the everyday Americans and the others from all walks of life who perished that day,” we said. “The people who represented the multitude of differences between Americans but were, for a brief moment, united by their humanity.”
“Never forget,” we said about the first responders from the police and fire departments and emergency techs in New York City, Washington, D.C., Northern Virginia, and rural Pennsylvania who came to the aid of those injured, dying, or dead. Especially those who died that day because their jobs had them rushing into the burning buildings rather than out of them.
America, we forgot—and we should be ashamed.
Over the last decade, we’ve watched as the nation turned in on itself. First responders are being shunned, even assassinated. In California this past weekend, so-called peaceful protestors gathered outside the hospital where two Los Angeles County deputies who’d been ambushed were being treated, shouting their hopes the officers would die.
This didn’t start with Donald Trump. This didn’t start with Barack Obama. It started outside politics, in the American culture where somehow we’ve been divided up, piecemeal, into groups airing grievances. Left or right, it makes no difference. We’ve allowed ourselves to be pitted against one another, and we should be ashamed.
We’ve forgotten that in America each life matters. We’re all created equal, as individuals, not assigned at birth into groups because of skin color, economic status, education, or biological sex. We are an imperfect nation, to be sure, but almost certainly less imperfect than any other.
The fanatics responsible for the murder of more than 3,000 of our brothers and sisters and mothers and fathers on that dark day nineteen years ago didn’t attack us in protest of the country’s history of systemic racism. Or because women get paid less on average than men. Or because some people think you should have to show a government-issued photo ID that proves you are who you say you are before you can exercise your right to vote. Pick any complaint you want; it isn’t why America was attacked.
We were attacked because, out of all the nations of the world, America stands for the idea that all men and women are by their birthright free and should be treated equally under the law. We were attacked because of our ideas about religious liberty—that different faiths can coexist respectfully and peacefully—and because we believe women have just as much right as men to pursue an education. And for many other reasons, all of which have to do with what is best about us, because of the ideas that make our civilization strong. We are one nation and, fundamentally, we all matter. In the heat of the moment, we’ve forgotten that. Yet rather than dwell much longer on our errors, let’s come together in our strengths to make this nation all it can be, for now and for generations to come.
Democrats in the U.S. House of Representatives may have been stuck in their districts because of the coronavirus but Speaker Nancy Pelosi has been working hard on their behalf. On Tuesday she introduced the next in what’s getting to be a long line of COVID relief bills that, true to form, is loaded with tax and spending increases.
According to a quick but probably not definitive analysis of what she’s calling The Heroes Act by the good folks at Americans for Tax Reform, the Pelosi bill:
The new Pelosi bill also bails out her political allies, whether they be the cashed strapped, heavily indebted blue states like California, New York, and Illinois or cities like Baltimore, Los Angeles, and Philadelphia or her wealthy coterie of San Francisco sophisticates who probably also have freezers full of designer ice cream.
First off, she’s calling for $500 billion in funding to assist state governments with the fiscal impacts from the public health emergency caused by the coronavirus, followed by $375 billion in funding to assist local governments. Then she wants $20 billion to assist Tribal governments, $20 billion for the governments of the Territories, and an additional $755 million for the District of Columbia.
But the biggest kick of all is the two-year suspension — for 2020 and 2021 — of the elimination of the cap on the deductibility of state and local taxes on federal tax returns. That deduction, called SALT by the tax policy experts, helps ease the burden of living in high cost, high tax states like California while increasing the total burden of the federal budget sitting on the shoulders of low tax and no tax states like South Dakota, Texas, Tennessee, and Florida. To put it another way, it’s a way to get the red states to pay for the upgraded standard of living enjoyed by blue voters in blue states.
Congress and President Donald Trump capped the deductibility of SALT in the Tax Cut and Job Acts, making everything fairer to all. Pelosi wants to undo that permanently, which is probably why her proposed suspension lasts two years — which she figures is enough time for a Biden administration to get repeal through a Democratic Congress. What’s especially galling is how no one is going to call her out on how she and her husband will personally benefit if the cap is lifted. The Pelosis stand to save a lot of money if the SALT cap comes off while many of the rest of us end up paying more. Didn’t she recently call a scheme like that where an elected official stood to profit personally from political action they’d proposed or undertaken an impeachable offense?
By Fox News•
“Of all tyrannies,” C.S. Lewis once observed, “a tyranny sincerely exercised for the good of its victims may be the most oppressive.”
We’re seeing the truth of these words play out right now all across the country, and if you don’t believe me, just look at the headlines.
While we try to help each other stay healthy and safe, state and local authorities are seizing unprecedented amounts of power in the supposed pursuit of that goal, setting dangerous precedents along the way.
Economic czars in the form of governors, including in my own state of Kentucky, are taking it on themselves to decree which businesses will live and which will shutter for continually extended lengths of time, leaving those who have poured their entire lives into their businesses to try to pick up the pieces and do their best to survive and feed their families in the meantime.
The czars decide who can and can’t get medical treatment and restrict fundamental liberties such as the right to gather to worship.
Kentucky Gov. Andy Beshear went so far as to tell some churchgoers their license plates would be scanned, and they would be forced to quarantine for two weeks – never mind that, having an interest in their own health, these worshippers are more than capable of conducting their services safely.
Innocence is not allowed to be presumed. Comply or else.
In Michigan, a self-appointed monarch dictates away basic needs such as landscaping. Not willing to let a little thing like the state legislature get in her way, she simply charges ahead and ignores it when it refuses to support continuing a state of emergency. Gov. Gretchen Wittmer seems to have forgotten she serves the people of Michigan and is not living in Buckingham Palace a century ago when subjects would bow obediently to their sovereign.
Incredibly, in California, a paddleboarder was chased, not by one but two government boats – all while he was about as socially distanced alone in the ocean as one can get. I’ve heard of high-speed car chases in California, but this might be the first high-speed boat chase involving a paddleboarder.
Concerns are also being raised both at home and abroad over excessive use of force.
In West Odessa, Texas, the county sheriff showed up with a SWAT team in response to a local bar reopening and protesters peacefully assembling. Surreal news footage shows the owner being taken away by an officer, hands behind her back.
Let’s take an important second to get something straight: I actually support the concept of states taking the lead in responding to the pandemic, and I applaud President Donald Trump for following this approach as he focuses on broader federal efforts that no state could do on its own.
Is it any wonder, when tensions are already ratcheted up due to the virus itself, that we are seeing false accusations and outright violence and threats?
But it does not excuse abuse of authority. It does not require executives to ignore their legislatures or place unreasonable or unconstitutional burdens on Americans, and we should call those overreaches out when we see them.
In fact, I have said time and again that reopening our nation will require an even more tailored local response, right down to the city level. Bowling Green is not New York City or even Louisville, for example, and should be free to take different steps to get its local economy going again.
This means state and local leaders working with each other instead of acting unilaterally.
In some cases, authority figures are turning Americans against each other, echoing stories we once thought we would only hear coming out of the Soviet Union or Communist China as neighbors are encouraged to turn one another in to the authorities if they see or even suspect anything less than perfect compliance with often arbitrary guidelines.
Mayor Bill de Blasio, saying, “[W]e still know there’s some people who need to get the [social distancing] message,” has encouraged New Yorkers to take a picture when they think social distancing guidelines aren’t being followed and text it to the city. “[A]ction will ensue,” promises the mayor.
Is it any wonder, when tensions are already ratcheted up due to the virus itself, that we are seeing false accusations and outright violence and threats?
A dad and mom taking their young kids into a bank to try to open a joint account are criticized for supposedly not socially distancing enough and are – anonymously – turned in to Child Protective Services on false accusations.
A woman identified as a teacher in New Jersey wishes “a long, painful death” from coronavirus on students playing football. We read stories of alleged choking over social distancing, and the antagonism plays out in attacks online.
C.S. Lewis also warned us that “[t]he robber baron’s cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience.”
There is little government cannot – and has not tried – to justify with the words “for our own good” or “to keep us all safe.” And once that justification – even if genuinely offered – is allowed to automatically stifle debate, actions build “without end.”
You don’t have to look far back into our own history to see where such roads can lead, as the federal government’s response to 9/11 morphed into surveilling innocent Americans. Yet I and others cannot even bring the issue up in Congress without being accused of not taking our national security and safety seriously.
Already, we hear talk of how much additional surveillance we will be expected to tolerate due to the pandemic – for our own good, of course.
As concerning as these issues are, I remain encouraged by the many positive stories that exist of Americans coming together to face this challenge, and I am confident we will beat it as we have so many others.
But it’s imperative we do so while protecting both life and our unique way of life – defined as one that gives the benefit of the doubt to freedom and responds from that philosophical grounding.
Recent events again prove the Founders’ wisdom in deliberately spreading power out and decentralizing our system to try to curb infringements on our liberties.
That is supposed to set us apart, and it is up to each of us to make sure it continues to do so.
How the U.S. telecommunications industry helped America manage and get through the COVID-19 pandemic can be a lesson for other industries and for the U.S. government, which has been hamstrung by a failure of imagination common to those working in bureaucratic institutions. Consider where we’d be if the phone, cable, and satellite companies had been unable to keep us connected.
The migration was rapid and thorough once the closures began. Collegiate and local classrooms moved online. Grocery items started coming into our homes from web sites rather than the mall. Telehealth exploded as doctors began to see patients over webcams instead of in the office. Examples of America’s resilience and resourcefulness were everywhere. The Internet allowed families to visit, for all of us to stay up to date on the latest advisories, and for each of us to remain plugged into civilization while unable to participate in it.
Mobile devices are just as important as the networks that connect them. Our smartphones have become our eyes and ears to the outside world. Their signals go where we now cannot, only because the Internet is an American product, governed largely by American ideals. If it were not, if the Chinese were in charge, for example, the official response to the pandemic would have probably included enforceable restrictions on Internet access or a complete shutdown of the ‘Net to stop the spread of information.
Whether it remains free and open depends on many factors. The People’s Republic of China has an unfair advantage in the global race to 5G. It has developed, through its Huawei subsidiary, technologies it’s trying to force the rest of the world to adopt. If they succeed, as I’ve written before, it would be a clear and present danger to the future of global commerce and the free flow of information.
In recognition of this, the Trump Administration has been right to acknowledge that a threat exists and to take steps to keep China and Huawei from winning. The Commerce Department is finalizing regulations aimed at limiting American firms’ sale of chips to Huawei. The Justice Department has charged them with conspiracy. That’s only a start. A government-wide effort is needed to blunt the impact of Huawei’s efforts to make it the global provider of choice for the world’s 5G needs.
As part of that, American consumers must continue to be allowed to buy smartphones and tablets made by companies other than Huawei. An obscure Irish company called Neodron, which recently filed patent complaints with the U.S. International Trade Commission, could make that difficult.
Neodron, which is backed by some of the same people who brought us the mortgage securities financial crisis, has filed two complaints with the ITC alleging that virtually every non-Chinese smartphone and tablet maker – Apple, Amazon, Motorola, LG, and Samsung, to name but a few – is infringing on patents related to touchscreens.
If the commission agrees finds that to be so the only remedy it can impose would be an exclusion order that would effectively block the importation of any device found to be infringing on the patents at issue. That would include greater than 90 percent of all smartphones and over 90 percent of all tablets currently available in the U.S. market. The only device manufacturers left would pretty much be Chinese companies which could, therefore, control American markets. As we’ve seen over the past several months as the COVID-19 virus has spread, the Chinese cannot be trusted.
The ITC needs to dismiss the Neodron complaint post haste. It’s bad enough the company could lodge a complaint that might paralyze a critical sector of our economy. The U.S. government has no business giving away the kind of strategic advantage we could never get back to a potential enemy. The Chinese operate by their own rules when it suits them – even when it makes them poor global citizens. They’re out to dominate every aspect of the world economy. We’d be foolish to let that happen – and it would if the ITC finds in Neodron’s favor.
It is arguable that foul, fetid, fuming, foggy, filthy Philadelphia is already so messed up that it can’t be made much worse, but some new City Councilmen are going to try. From The Philadelphia Inquirer:
by Laura McCrystal | Updated: January 6, 2020 | 5:00 AM
A younger, more liberal City Council is coming to Philadelphia.
Council members will take their oaths of office Monday at the Met Philadelphia, where Mayor Jim Kenney also will be inaugurated for a second term.
Poverty, gentrification, gun violence, education funding, and cleaning up environmental hazards in city schools are among the issues likely to take center stage in 2020. That’s according to interviews last week with several of the 17 new and returning members. Although Council members did not offer many specifics on bills they plan to introduce, they said there’s new energy and political will to focus on those issues.
“Council seems to be coalescing around those critical needs,” said Councilmember-elect Jamie Gauthier, who upset longtime incumbent Jannie L. Blackwell to represent the Third Council District in West Philadelphia. “And I think that’s because of what we’re hearing from people in neighborhoods and because we’re looking at the hard numbers.”
At the end of the last Council session, lawmakers enacted the first changes to the controversial 10-year tax abatement for new construction in almost two decades. And Council President Darrell L. Clarke has convened a special committee to address poverty, with an ambitious goal of reducing the number of Philadelphians living in poverty by one-quarter, from about 400,000 to 300,000, in the next four years.
Let’s get real here: the City of Brotherly Love has been governed by the Democrats for decades upon decades. Bernard Samuel, who left office on January 7, 1952, was the last Republican Mayor of Philadelphia. Put another way, George VI was still King of England the last time Philly had a Republican leadership.
The new Council will be younger and more progressive, as four newcomers take office. Councilmember-elect Kendra Brooks of the Working Families Party won an at-large seat long held by Republicans, one of two effectively set aside for candidates outside the Democratic Party. She will be joined by three new Democratic colleagues: Gauthier and at-large members-elect Katherine Gilmore Richardson and Isaiah Thomas.
Now, what do these new members want to do? Kendra Brooks wants to impose rent control, because, naturally, cutting the profits of landlords is going to make them invest more money into their properties. Helen Gym wants to reduce the 10-year developmental tax abatement to produce additional tax revenue to go into ‘affordable housing,’ because of course developers will want to build more affordable housing if it makes them less money. Jamie Gauthier wants to change zoning laws to ‘require affordable housing’ in new developments, because it just goes without saying that reducing the values of higher end housing by building lower-end housing next to them will generate increased profits and encourage developers.
Philly is a city in which the unions have a stranglehold over construction: while it’s possible to try to build with non-union labor, pickets and other union harassment impose all sorts of additional costs. Thus, the price of construction is higher than it might otherwise be, and the ‘progressive’ councilmembers want to lower profit margins even more.
Misses Gym and Brooks have made statements that they’d like to impose a local version of the ‘Green New Deal’ on the city, which can only increase costs on everybody, a kind of silly way to combat poverty.
Liberals have held almost total control in Philadelphia for decades, but liberal policies haven’t helped much, and the city has “lost 600,000 population since 1950, 70,000 in the last decade alone,” according to a Wharton School paper from 2017. People have been fleeing the city, because the Democrats’ policies haven’t worked. The city has a consistently high crime rate, which the City Council is attempting to solve by hiring the aptly-named Danielle Outlaw, formerly the top cop in Portland, Oregon and a Deputy Police Chief in Oakland, California — which has the Pyrite State’s highest crime rate — as Police Commissioner. Under Commissioner Outlaw’s tenure in Portland, that city had a crime rate significantly above the national average. Combine that with District Attorney Larry Krasner, who hates the police and doesn’t pursue supposedly petty offenses, and it’s a prescription for even more disaster.
Well, let’s just call it an experiment. The voters took a liberal local government, and pushed it even further to the left. Only time will tell whether Philadelphia gets better or gets worse. But it makes me glad that I no longer pay taxes in Pennsylvania.
Column: How the left uses corporate America to evade democracy
Time was, CEOs of mighty enterprises shied away from politics, especially hot-button social and cultural issues. They focused instead on the bottom line. They maximized shareholder value by delivering goods and services to customers. Some businessmen still operate by this principle. In doing so they provide not only for their employees and CEOs and board members but also for the institutions—pensions, individual retirement plans, index funds, hospitals, philanthropies—invested in their companies.
That is no longer enough for many of America’s richest and most powerful. Suddenly, corporate America has a conscience. Every week brings new examples of CEOs intervening in political, cultural, and social debate. In every instance, the prominent spokesmen for American business situate themselves comfortably on the left side of the political spectrum. Shareholder capitalism finds itself under attack. Not just from socialism but also from woke capitalism.
These outbursts are not just virtue signaling. Nor is the left-wing tilt of corporate America merely a response to the “rising American electorate” of Millennial, Gen Z, and minority consumers. What is taking place is not a business story but a political one. What is known as “stakeholder capitalism” is another means by which elites circumvent democratic accountability.
Corporate managers find themselves at odds with at least 46 percent of the electorate. The divergence is not over jobs or products. It is over values. The global economy generates social inequalities as much as economic ones. Many of the winners of the global economy justify their gains by adopting the rhetoric, tastes, ideas, and affiliations of their cultural milieu. Their environment is inescapably center left.
Even so, the social justice agenda of corporate America is not only meant to appease voters, or even to placate Elizabeth Warren. Some of these businessmen really believe what they are saying. And they are beginning to understand that they have another way—through social position and market share—to impose their cultural priorities on a disagreeable public.
The trend began as a response to the Tea Party. In 2010 the “Patriotic Millionaires” began advocating for higher marginal tax rates. A few years later, when state legislatures passed laws opposed by pro-choice and LGBT groups, corporations threatened or waged economic boycotts. Large individual donations made up more than half of Hillary Clinton’s fundraising; for Donald Trump the number was 14 percent.
CEOs protested the implementation of President Trump’s travel ban in 2017. The following year, after two black men were arrested at a Philadelphia Starbucks, Howard Schultz closed stores nationwide so his more than 175,000 employees could be trained in diversity, equity, and inclusion. Earlier this summer, Nike pulled shoes featuring the Betsy Ross flag after Colin Kaepernick raised objections. Recently four major auto companies struck a deal with the state of California to preserve fuel economy standards the Trump administration opposes.
Business has provided ideological justification for its activities. In mid-August, a group of 181 members of the Business Roundtable, including the CEOs of Morgan Stanley, GM, Apple, and Amazon, issued a statement redefining the purpose of a corporation. “Generating long-term value for shareholders” is necessary but insufficient. In the words of Jamie Dimon, business must “push for an economy that serves all Americans.” A few weeks later, one of the Business Roundtable signatories, Walmart CEO Doug McMillon, announced that America’s largest retailer would end sales of ammunition for handguns and for some rifles. Once its current inventory is exhausted, of course.
“We encourage our nation’s leaders to move forward and strengthen background checks and to remove weapons from those who have been determined to pose an imminent danger,” McMillon wrote. “We do not sell military-style rifles, and we believe the reauthorization of the Assault Weapons ban should be debated to determine its effectiveness.” Note the use of the first-person plural. Of Walmart’s 1.5 million employees, more than a few, one assumes, do not believe it is necessary to “strengthen background checks” or debate “the Assault Weapons ban.”
To whom does the “we” in McMillon’s statement refer? To everyone who thinks like he does.
“You have a business acting in a more enlightened and more agile way than government,” is how one MSNBC contributor enthusiastically describedWalmart’s directive. Left unsaid is why government has not, in this case, been “enlightened” or “agile.” The reason is constitutional democracy. The electorate, like it or not, continues to put into office representatives opposed to gun registration and to a renewal of the Assault Weapons ban. And these representatives, in turn, have confirmed judges who believe the Second Amendment is just as important to self-government as the First and Fourteenth.
Much of Western politics for the last decade has involved elites figuring out new ways to ignore or thwart the voting public. Barack Obama was following in the EU’s footsteps when he went ahead with Obamacare despite Scott Brown’s victory in Massachusetts in January 2010, and when he expanded his DACA program to the parents of illegal immigrants brought here as children despite Republican gains in the 2014 election and despite his own admission that he lacked authority.
James Comey’s towering ego and self-regard compelled him to interfere in the 2016 election with consequences we can only begin to reckon. Over the last two-and-a-half years, district judges and anonymous bureaucrats have impeded and obstructed the agenda of a duly elected chief executive. A few weeks ago a former governor of the Federal Reserve suggested in Bloomberg that the central bank should thwart Trump’s reelection. And in England, elite resistance to the results of the 2016 Brexit referendum and to the 2017 parliamentary invocation of Article 50 has brought the government into a crisis from which there seems no escape.
In such an environment, one begins to see the appeal of nongovernmental instruments of power. What might be rejected at the ballot box can be achieved through “nudging” in the market and in the third sector. If you can’t enact national gun control through Congress, why not leverage the economic and cultural weight of America’s largest corporations? The market, we are told, is not a democracy.
Oh, but it is. The market may be the ultimate democracy. “The picture of the prettiest girl that ever lived,” wrote Joseph Schumpeter, “will in the long run prove powerless to maintain the sales of a bad cigarette.” Woke capitalists remain accountable to consumers and to shareholders. The audiences of ESPN and of the NFL cratered when those institutions elevated politics over consumer demand. Hollywood’s anti-American offerings routinely flop. Public opinion, in the form of popular taste, rules. Shareholders of publicly traded companies are a type of electorate. The companies that do not satisfy customers will disappear. Or shareholders will demand changes to management to prevent such an outcome.
The politicization of firms is a double-edged sword. The responsible stakeholder CEOs may have the best of intentions. They might assume they are doing the right things not only by their companies but also by their societies. What they fail to understand is that corporations acting as surrogates of one element of society, or of one political party, will not be treated as neutral by other elements, by the other party. By believing their superior attitudes will save capitalism, our right-thinking elites are undermining its very legitimacy, and increasing the severity of the ongoing populist revolt.
His flip-flops suggest that he remains troublingly clueless about the biggest geo-political peer rival and potential challenger to the United States.
Under old-school journalism, reporters would be camping in front of Joe Biden’s campaign offices asking questions on his foreign policy: whether he still thinks Qatari-funded jihadis wanted to topple Syria’s Bashar Assad, if Libya intervention under President Obama was a mistake, and the reason for the flop of Obama’s Asia Pivot. In the last few weeks, Joe Biden has shown he would say anything to be president, including first promising to cure cancer, then flip-flopping on abortion, and finally flipping on China.
American domestic politics are for Americans to decide when the election comes, but at a time Beijing is returning to Tiananmen form, no bigger issue needs further scrutiny than Biden’s China stance.
Biden recently said in Iowa that China is a “serious challenge” and threat, adding, “We are in a competition with China. We need to get tough with China. They are a serious challenge to us and in some areas a real threat.”
Funny, because in May, he mocked the China threat, saying, “China is going to eat our lunch? Come on, man…They can’t even figure out how to deal with the fact that they have this great division between the China Sea and the mountains in the east, I mean in the west.”
Biden then added that he is worried about President Trump’s tariff wars against China, which is arguably “exacerbating the challenge,” and said “if we do what we need to do here at home…we can out-compete anyone.” According to reports, Biden then said: “You bet I’m worried about China…if we keep following Trump’s path.”
While pondering the alternative way, Biden said he would force China to go green: “Biden will rally a united front of nations to hold China accountable to high environmental standards in its Belt and Road Initiative infrastructure projects so that China can’t outsource pollution to other countries.” Yes, good luck with that. It might sound plausible in a school kid’s Earth Day project, but not in the policy plans of the prospective leader of the free world.
This, is, of course, pure madness. There is no bigger potential challenge for the West, and especially for the United States, than the rise of a near peer-rival great power like China. At this very moment, Chinese government lackeys in Hong Kong are cracking down on the largest protests of 2019, where more than a million Hong Kongers are marching to stop China’s de facto takeover of Hong Kong’s justice system, which would allow any dissident to be packed off to trial in mainland China.
But that is not the biggest issue. The problem is China is a challenge unprecedented to U.S. policymakers. Chinese peacetime gross domestic product is overtaking America’s, and China is set to soon, as a percentage of relative power, eclipse all previous great power challenges that the United States has ever faced, including Imperial Spain, Imperial Germany, Nazi Germany, Imperial Japan, and even the Soviet Union.
To put it simply, the conflict of interest between the rising China and an established hegemon in the United States is inevitable. In international relations, it is known as “the Thucydides Trap“.
Consider the world of international politics like a snooker table. Unlike the domestic politics of a nation state, the international system is anarchic in nature. That is because, in domestic politics there is an established government that can decide and, if needed, enforce. The lack of hierarchy in international politics makes it anarchical, in Kenneth Waltz’s terminology, because there is no global governance, and any attempt to form a global empire would invite backlash from rival powers, while any attempt at global governance would result in a global war.
Naturally, international politics is determined by nation-states, and more importantly great powers, which are the single most important actors of world politics. And great powers rise or fall due to a variety of factors: stupid policies, ideological and military overstretch, spending more than one can afford, foolish wars and global policing, failure or decline in technological competition, juvenile or effeminate elites, and the biggest variable of all: time.
In that light, the Thucydides Trap comes in.
Throughout history, there has been one completely consistent pattern: Growing and rising powers always challenge established powers. From Athens and Sparta, to Rome and Carthage, to Napoleon, to the two World Wars, and the Cold War, this pattern remained the same. China and the United States are just the new avatars of this great game, as the actors change, but the game remains the same.
In this context, conflict does not always mean war. It could be a cold war, trade war, proxy wars, anything, but conflict between a rising and established power is inevitable. As J.J. Mearsheimer states in his book, China will try and push away the United States from Asia, just as the United States once pushed away European great powers from the Western Hemisphere.
Meanwhile, Biden is flip-flopping on this biggest challenge confronting the United States, tweeting friendship bands about how much he misses Barack Obama, and claiming there was not a hint of scandal during his eight years as vice president. For all his problems, President Trump has been forthright about the China challenge, much more than any current Democrat, or even a majority of the Republican leaders. In the future, this might be considered his legacy.
While most focus on tariffs and economics, China—with its AI research, space research, naval build-up, data and IP theft, and unfair trade practices—is a much bigger challenge than to suffer a dollar increase in the price of a beer can. There are questions already on how one should contain China, or what in itself is an intelligent containment strategy.
Some are pointing out their doubts about whether the present U.S. leadership and population is even martial enough to withstand the long-coming generational conflict. But whatever the case, to lightly rephrase an old and used proverb, you cannot choose whether to be interested in a coming Cold War, as the Cold War is already interested in you.
Biden’s callousness about identifying that and then his face-saving flip-flop is, therefore, the most troubling aspect of his candidacy. The less said about his Democratic colleagues, the better.
Something feels off in the timing of our debate over the economy. A loss of faith in free markets, among intellectuals and the public alike, was only natural in the 1930s. But today? Intellectuals on the left and the right are more convinced than ever that our economic policies are deeply misguided, at the same moment that unemployment rates and wage growth are the best they have been in decades. When Americans answer polls, they express less and less confidence in free-market capitalism — even as they express more and more satisfaction about economic conditions.
Perhaps people are evaluating these questions against different time horizons. They may, that is, think that the economy is performing well at the moment but has become less capable of delivering broad-based prosperity over the course of a generation. If today’s conditions persist long enough, then, the reputation of capitalism may recover.
Timing is relevant to our evaluation in another way. If our economy has gotten worse at generating sustained prosperity, worse enough to make a loss of faith in capitalism understandable if not justified, then it matters when this decline began.
In 2015, during the last presidential campaign, Hillary Clinton suggested that “for decades” the economy had been offering a worse deal for most people. Her explanation: “For 35 years, Republicans have argued that if we give more wealth to those at the top — by cutting their taxes and letting big corporations write their own rules — it will trickle down. It will trickle down to everyone else.” The election of Ronald Reagan, in other words, was the turning point. It followed that many of his policies should be reversed: The top tax rates should go back up and unions should be strengthened.
If economic conditions have been deteriorating for an even longer period, however, then merely reversing Reaganomics might not be enough. And it is common to run into claims, apparently backed by data, that suggest as much. The Pew Research Center notes that the average wage, adjusted for inflation, fell between 1973 and 2018. It had risen steeply from 1964 (when the data series began) through 1973. Then it dropped for roughly two decades, and over the next two recovered but did not get back to its peak.
If real wages have truly been stagnant for longer than most Americans have been alive, then the economy has not worked in anything resembling the fashion we expect. Economic growth has been mostly an illusion: We have more stuff only because more of us work, large numbers of women having joined the paid labor force. If this picture is accurate, we need to make radical changes either to the economy or to our expectations of ever-rising prosperity.
There are, however, two big reasons to doubt the stagnation thesis. The first is that non-wage benefits have become a larger and larger element of compensation. Perhaps they have become too large an element: The tax code encourages employees to get health insurance through their companies rather than take higher wages and buy coverage themselves, and there are reasons to think we would be better-off if the tax code did not do that. But non-wage benefits have economic value to employees, and so looking at wages alone will cause us to underestimate employees’ material welfare.
The second reason for doubt is that a common method of adjusting for inflation — the one used in the Pew numbers cited above — overdoes it. The center-right social scientist Scott Winship has been indefatigable in explaining why using the Consumer Price Index (specifically a measure called “CPI-U”) as the gauge of inflation is a mistake, and how it warps our understanding of economic trends. It overestimates housing inflation before 1983, and ignores how consumer behavior responds when prices change.
Since inflation compounds, small errors each year add up to major changes over decades. Use a better measure of inflation, one based on personal-consumption expenditures, and the average wage rose by 21 percent from 1973 to 2018. (Average compensation must have risen more.)
The data on median family income also show a reassuring amount of growth. The family in the middle of the pack in 2015 made 45 percent more, with the right inflation adjustment, than its counterpart in 1970.
But the same numbers may also explain some of the public’s dissatisfaction with the economy. Median family income grew by a spectacular 58 percent in the 15 years from 1955 to 1970, then grew another 11 percent from 1970 to 1985, and 24 percent from 1985 to 2000. But the median family income of 2014 was slightly lower than it was in 2000.
What happened is that after the turn of the millennium we went through an extended period of slow growth punctuated by one mild and one severe recession. Median family income dropped more than 7 percent from 2007 through 2011, the sharpest decline since this data series started in 1953. It did not recover completely until 2015.
We have had a few good years since then. But it is not surprising that during the last two decades many Americans came to feel that their economic circumstances were stagnant and insecure. It is not surprising, either, that many of them have the sense that things used to be better — or that a generation of young people who started their work lives in a slow-growth economy tend not to have positive attitudes toward capitalism.
Instead of five decades of economic stagnation, we have had two decades of weak growth. That record does not suggest that the pro-market policies of the 1980s and 1990s were fundamentally mistaken. It suggests, rather, that we have discrete problems that deserve to be tackled.
High on the list of needed changes should be a reform of our monetary regime. It failed badly over the last dozen years. In 2008, excessive fear of inflation led the Federal Reserve to signal that it was going to tighten monetary policy even as the economy was sinking into a recession. It kept monetary conditions too tight after the crisis hit, too, for example by encouraging banks to hold additional reserves. These policies made the recession more severe and the recovery weaker. That these failures are not more widely appreciated is symptomatic of the misguided thinking that continues to govern monetary policy.7
Reforms should be undertaken in other areas, too. Our higher-education system is not working for most young people. Our immense health sector includes immense inefficiency. Regions of the country with high economic growth have imposed regulations that make it prohibitively expensive for less fortunately situated Americans to move there.
So we are called to be ambitious, but not revolutionary. Capitalism does not need to be overthrown or even rethought. Rather, the principles that make markets work need to be applied to some areas where they have not been present. Our economic system does not need dismantling. But it does
While the media-driven scandals du jour roll on, President Trump quietly goes about reshaping the U.S. economy. Case in point: Last week, Trump directed the EPA to cut even more red tape for manufacturers. And he’s not done yet.
The idea is not to get rid of air quality standards, but to make sure that the science behind them is transparent and reliable — and not just part of someone’s political agenda, as has often been the case in the past.
The White House says that U.S. National Ambient Air Quality Standards constitute “outdated and unnecessary barriers to growth.” Under the new standards, EPA will process state-submitted plans within 18 months, for instance, giving regulated industries a clearer idea of what they can and can’t do, quickly. And the permitting process for individual projects will eventually be limited to a year. Continue reading
By Eric Peterson • The Federalist
Last month, when President Obama’s Department of Labor released its long-awaited “overtime rule,” the mainstream media headlines were predictable: “Obama administration announces final overtime rule boosting pay for millions,” said the Los Angeles Times. “New overtime rules a boon for middle class workers,” added Newsweek. With claims from the Obama camp that the new mandate will boost pay by $12 billion over the next decade, the majority of the coverage has been overwhelmingly positive.
But here are a few headlines we might have seen if media outlets made an honest assessment of the rule: “Overtime rule to cause more than 4,000 cleft lip surgeries to not be performed for children in need”; “At-risk youth could see fewer programs because of costly DOL rule”; “Domestic abuse nonprofit faces cuts because of Obama’s overtime rule.”
Those may not have been headlines atop major newspapers, but they are real concerns nonprofit organizations submitted to the Department of Labor while the overtime rule was undergoing consideration over the past year. Continue reading
America’s declining score in the index is closely related to rapidly rising government spending, subsidies, and bailouts.
by Anthony B. Kim • Daily Signal
According to the 2016 Index of Economic Freedom, an annual publication by The Heritage Foundation, America’s economic freedom has tumbled. With losses of economic freedom in eight of the past nine years, the U.S. has tied its worst score ever, wiping out a decade of progress.
The U.S. has fallen from the 6th freest economy in the world, when President Barack Obama took office, to 11th place in 2016. America’s declining score in the index is closely related to rapidly rising government spending, subsidies, and bailouts. Continue reading